According to a real estate blog, there are reports that banks in the state of Florida are getting aggressive and going after deficiency judgments against homeowners who walk away from their mortgages.  A deficiency judgment is allowed in some states.  It is the difference between the mortgage owed and the sale price of the house after foreclosure.

In states like Florida, this can be big numbers.  Say you had a house with a mortgage of $500,000 but now that the market has gone south it’s only worth $250,000.  When the bank forecloses and sells your home, they can come after you for the remaining $250,000.

In places where the market value has plunged off a cliff, some homeowners are walking away and letting banks take back their homes.  But in states that allow deficiency judgments, banks may start playing hardball.  Deficiency judgments vary by state, so always seek legal counsel in making your decisions.

Here is a link to a website outlining Missouri foreclosures.

Here is a link to a website outlining Kansas foreclosures.